Retiring abroad: Canada

If you dream of retiring abroad like many UK pensioners, it's a big decision that can affect your pensions. In a poll carried out in 2006, the majority of Britons, 53%, would consider emigrating. Indeed, more than 300,000 individuals leave the UK each year to start a new life overseas. Estimates suggest that up to 5.5 million British nationals now live abroad.

Canada is the third expat destination, after Australia and the USA. This is followed by Spain and Ireland. According to United Nations data, the total number of British citizens living in Canada in 2019 was 531,000.

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy

 

Retiring abroad Canada - residence permit

Although there is no retiree visa specifically in Canada. Various visas allow retiree expatriates to live in the country legally. 

The Super Visa program in Canada is designed for parents and grandparents of Canadian citizens.

This initiative allows them to stay in Canada for an extended period. Up to two years at a time, without the need to renew their status. Expats on this visa won't have access to Canada's public healthcare system. 

The Parents and Grandparents Program (PGP) is designed to facilitate family reunification.  Allowing Canadian citizens to sponsor their parents and grandparents for permanent residency.

One significant benefit of obtaining permanent residency is access to essential services. This includes healthcare, through Canada's universal healthcare system. This ensures that retirees can enjoy a good quality of life.

Retiring abroad Canada - taxation advice

Canadian residents, including retiree expats, are subject to income tax and tax on their worldwide income. 

It is also important to note that income tax varies from province to province. Alberta being the country's lowest tax while Ontario is among the highest.

Retired expats are subject to a reporting regime for all foreign-held investments. Suppose a retired expat has a foreign savings or investment account that exceeds a certain threshold. In that case, this must be declared to the Canada Revenue Agency.

The tax complexities for retired expats could be a concern. Speaking to a financial advisor who specialises in this area would be a good idea. This is required to determine whether retiring to Canada can work in your favour.

Retiring abroad Canada - banking in Canada under the Super Visa

Under the super visa, you would leave your pension in the UK. However, it is possible to open a bank account in Canada. This is essential for paying for internet connections, mobile phones, rent, and utility bills.

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS, avoiding currency transfer risks.

 

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland